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House Votes To Make Bonus Depreciation Tax Cut Permanent
Author: Scarinci Hollenbeck, LLC
Date: July 25, 2014
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The U.S. House of Representatives voted July 11 to make permanent a temporary tax cut that allows businesses to write off 50 percent of the cost of new equipment in the year that it is purchased, according to The Associated Press. Proponents of the break argue that it makes it easier for businesses to invest in new equipment, while opponents say that it bestows little real benefit for a high price tag. The House approved the bill with all but two Republicans in a 258-160 vote.
“It’s easy, if you want to grow the economy, encourage job creation and increase federal revenue, you support making bonus depreciation permanent,” said Rep. Pat Tiberi, R-Ohio, who sponsored the bill, according to the AP. “Permanency gives job creators the certainty they need to plan and invest in their businesses, including hiring employees.”
The White House, which is threatening to veto the bill, countered by saying that the break “was never intended to be a permanent corporate giveaway,” the news source reported. The bill adds $287 billion to the budget deficit over the next ten years, as no spending offset was included.
Rep. Lloyd Doggett, D-Texas, expressed his frustration with the reduced government income during the July 11 debate, according to CNN. A number of significantly smaller bills have been blocked in the House by Republicans’ insistence that spending be offset by cuts elsewhere, including $3.7 billion to respond to children crossing the Mexican border, $11 billion to continue funding highway projects and $35 billion to fix the veteran’s health care crisis.
“Wildfire season is approaching and there are not enough resources,” said Doggett, according to CNN. “Our highways crumble, bridges literally fall down… While there is so much of vital needs that we just don’t seem to have the resources to address, these same Republicans tell us that we can afford to borrow from the Chinese or the Saudis to deliver [tax cuts].”
Find out how tax breaks are affecting U.S.businesses from some of my previous posts:
- House Makes Small-Business Tax Break Permanent
- New Jersey Gives $260 Million Tax Break To Holtec International
- Sen. Wyden to focus on restoring tax breaks
- EU Investigating Tax Breaks for US Multinationals
- Practices: Tax and Trusts & Estates, Sophisticated Estate Planning & Wealth Preservation
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